SBUXs competitor YUM has the following cashflows from its existing assets -- $100 in year 1 and either $100 or $60 in year 2 with equal probabilities. It has debt outstanding of $160 coming due in year 1 and $80 in year 2. It has access to two different projects which represent a gift from an unnamed individual. However, it cannot obtain both projects; it has to choose between project 1 or project 2. Project 1 yields $60 in year 1 and nothing in year 2, whereas project 2 yields $85 in year 2 and nothing in year 1. If necessary, YUM is able to issue a bond in the marketplace. All decisions are taken by YUMs managers to maximize the wealth of its stockholders. The required rate of return in this world is 16.67% for all investors (bondholder and stockholders there is no risk premium).

	Year 1	Year 2
		Good state	Bad state
Cashflow from Existing Assets	100	120	40
Debt outstanding	160	80	80
Project 1	60	0	0
Project 2	0	85	85

Question: What are the present values (as of the end of year 1) of the cashflows from projects 1 and 2? What are the present values (as of the beginning of year 1) of the cashflows from projects 1 and 2?